Homeowners Walking Away on a Clearer Path: Form 22A Deductions Allowable for Secured Debt Despite Surrender
by: William J. McLeod
McLeod Law Offices, PC; Boston
Completing Form 22A necessarily requires the consideration of pre-petition debts, but if a debtor intends to surrender real estate, should that expense still be included on Form 22A (the Means Test)? On May 23, 2008, the First Circuit Bankruptcy Appellate Panel (BAP) ruled that a debtor who intends to surrender property in chapter 7 may deduct contractually due monthly payments on that property on the means test, even though the debtor intends to surrender the property. In re Rudler,1st Cir. B.A.P., No. 07-015 (2008 WL 2222388).
The Ninth Circuit Rules on Chapter 13 “Projected Disposable Income” and “Applicable Commitment Period” under BAPCPA
by: Alane A. Becket
Becket & Lee LLP; Malvern, Pa.
William A. McNeal
Becket & Lee LLP; Malvern, Pa.
A debtor's proposed chapter 13 plan may not be confirmed if a trustee or the holder of an unsecured claim objects thereto unless a debtor pays in full each allowed unsecured claim, (11 U.S.C. §1325(b)(1)(A)) or pays to his unsecured creditors under the plan all projected disposable income to be received during the applicable commitment period (11 U.S.C. §1325(b)(1)(B)) (emphasis added). Thus, upon objection, if allowed unsecured claims are not paid in full, a plan may be confirmed only if it pays all allowed unsecured claims a qualifying amount of money over a qualifying span of time.
Courts Grapple with Homestead Limitation under §522(p)
by: Stephen W. Sather
Barron, Newburger, Sinsley & Wier PLLC; Austin, Texas
One of the most hotly debated aspects of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 was whether the unlimited homestead exemption in states such as Florida and Texas should be curtailed in bankruptcy proceedings. In a compromise, Congress adopted three specific limitations on the homestead exemption:
1) Section 522(o) disallowed value added to the homestead with intent to hinder, delay or defraud creditors within 10 years prior to bankruptcy;
2) Section 522(p) capped the value of "any amount of interest that was acquired" by the debtor within 1,215 days prior to bankruptcy at $125,000 per debtor (now $136,875) and
3) Section 522(q) imposed a cap on homesteads of persons who owe certain debts for fraud or securities violations.
ABI Launches Redesigned Consumer Bankruptcy Center
The ABI is excited to announce the launch of the redesigned Consumer Bankruptcy Center! You may go directly to the new website at http://consumer.abiworld.org, or you may connect to the website through ABI's home page at www.abiworld.org. The new site provides a vast array of ever-increasing resources to the consumer bankruptcy professional through its publications, conferences and Web resources. The redesigned site has two main sections: one for the consumer and one for the consumer bankruptcy professional. A consumer who is seeking information about the bankruptcy process or looking for a bankruptcy attorney may visit the "For Consumers" section for links to valuable information. A consumer bankruptcy professional may direct his or her clients to this section, and should also visit the "For Consumer Professionals" area for a wealth of resources that will assist him or her in practice. The section for the consumer professional has four subsections for upcoming consumer events, consumer publications, consumer educational resources and useful links to other sections of ABIWorld, such as headlines, blogs, podcasts and statistics. The site includes a search function where you can use keywords to search for consumer topics of interest. You may view the site at http://consumer.abiworld.org.
Two New Committee Leadership Positions Filled
The Committee is pleased to announce the addition of two new committee leaders. Both positions serve to increase committee activity and participation. Please join us in congratulating them on their appointments.
Membership Relations Director:
Thomas R. Dominczyk
Maurice & Needleman, PC
Flemington, NJ
(908) 237-4544
Special Projects/Task Force Leader:
Richard J. Hayden
Richard J. Hayden, PS
Spokane, WA
(509) 624-1111
Click here for descriptions for all committee leadership positions.